If you’re selling taxable goods or services in North Dakota, securing a North Dakota sales tax permit is a legal requirement—not a suggestion. Whether you’re a local boutique, a pop-up vendor at the state fair, or an online seller shipping to ND residents, state tax compliance begins with registration. And if you’re a remote seller crossing nexus thresholds, you may need to register even without ever stepping foot in the state.
Navigating these rules can get complex—but that’s where Hands Off Sales Tax (HOST) comes in. As your one-stop solution for multi-state sales tax compliance, HOST makes registration, filing, and audit prep easy.
Who Needs a North Dakota Sales Tax Permit?
If your business sells taxable goods or services in North Dakota—whether online, in person, or at events—you may be required to register for a sales and use tax permit. Below is how North Dakota’s registration requirements apply depending on your business activity and presence.
In‑State Sellers: Physical Nexus
You must register using the ND TAP portal if you have any of these in North Dakota:
- Physical locations such as a store, office, or warehouse
- Stored inventory (including via third-party fulfillment)
- Employees, agents, or representatives conducting business
- Participation in trade shows or temporary events within the state
These activities establish physical nexus, requiring registration and tax collection.
Out‑of‑State Sellers: Economic Nexus
North Dakota enforces economic nexus as of July 1, 2019:
- Required to register if your gross taxable sales into North Dakota exceed $100,000 in either the current or previous calendar year
- The previous 200-transaction threshold was repealed as of July 2019
Once you cross the threshold, registration and tax collection begin either at the start of the next year or within 60 days, whichever is earlier.
Marketplace Facilitators vs. Direct Sellers
If you sell exclusively through a registered marketplace facilitator in ND (e.g. platforms like Amazon or Etsy), the facilitator is responsible for collecting and remitting North Dakota sales tax.
However, if you exceed the economic nexus threshold through direct sales, you must register—even if the platform handles sales tax.
Voluntary Disclosure Program
Businesses that may have triggered nexus in previous years without registering can apply to the Voluntary Disclosure Program to limit penalties and back taxes. This is especially useful for remote sellers who were unaware of their obligations.
Step-by-Step Registration Process
Registering for a North Dakota sales tax permit is a straightforward process, but you’ll need to have your business information ready before starting. Here’s how to do it right.
Gather Required Information
Before registering, make sure you have:
- EIN or SSN (depending on business type)
- Business entity type (LLC, sole proprietor, etc.)
- NAICS code describing your business activities
- ND Secretary of State registration number (if you’re registering a North Dakota–based business)
How to Register
You can register in two ways:
1. Online via ND TAP (Taxpayer Access Point)
This is the most common and preferred method.
- Go to the ND TAP Portal
- Create an account if you don’t have one
- Select Sales and Use Tax Account setup
- Complete the application with:
- Business name and contact details
- Responsible party information
- Tax type selection (e.g., sales tax)
- Start date of business activity
- Electronic signature and submission
2. Paper Application (Form SFN 59507)
While rarely used, you can also file using the Sales and Use Tax Permit Application form.
Mail the completed form to the North Dakota Office of State Tax Commissioner.
Processing Time & Fees
- There is no application fee
- Permits are typically issued within 3–5 business days
- No annual renewal is required, but businesses must remain compliant to keep the permit active
This registration is your legal authorization to collect and remit North Dakota sales tax—so don’t skip it.
What You Receive: ND Sales & Use Tax Permit
Once your application is approved, North Dakota will issue your official Sales & Use Tax Permit. Here’s what to expect and how to stay compliant.
Issuance & Format
- Digital confirmation is provided immediately upon approval via the ND TAP Portal
- A paper permit is mailed to your business address shortly thereafter
This permit authorizes you to collect sales and use tax from customers in North Dakota.
Display Requirements
If you operate a physical storefront, kiosk, or participate in in-person sales events in North Dakota, you are required to display the permit at your place of business where it is visible to the public and tax officials.
Validity & Updates
- The permit does not expire annually
- You do not need to renew unless there’s a significant change in ownership, structure, or address
- Updates must be submitted via ND TAP promptly
Keep your permit information current to avoid compliance issues.
Filing Requirements, Rates & Frequency
Once registered, sales tax compliance in North Dakota involves accurate rate application and timely return filing. Here’s how it works.
Sales Tax Rates
- Statewide base rate: 5.0%
- Local add-ons: Ranging from 0.5% to 3.5%, depending on city or county
- Combined rates can reach up to 8.5% in some areas
- Use the official ND Sales Tax Rate Lookup Tool to find current local rates by ZIP code or address
How to Calculate Tax
Tax must be calculated on gross receipts from the sale of taxable goods or services. When local tax applies, both state and local rates must be applied to the total sale amount.
Filing Cadence
The filing frequency is assigned by the North Dakota Office of State Tax Commissioner and depends on expected tax liability:
- Monthly: If you collect over $333.33 in tax per month
- Quarterly: If you collect $83.34 to $333.33 per month
- Annually: If you collect less than $83.34 per month
Zero-sales periods still require filing.
Filing Method
All returns must be submitted electronically via ND TAP. Timely filing and payment are critical to avoid penalties or loss of good standing.
Exemptions, Use Tax & Resale Certificates
North Dakota provides several exemptions from sales tax—but sellers must follow documentation requirements carefully to remain compliant.
Resale Exemptions
If you’re selling to a buyer who will resell the product, you don’t need to collect sales tax—if they provide a valid resale certificate. Use ND’s Certificate of Resale (SFN 21950). The certificate must be completed in full and kept on file by the seller.
Other Common Exemptions
Sales to the following are often exempt from sales tax:
- Government agencies (federal, state, and tribal)
- Nonprofit organizations with IRS 501(c)(3) status
- Sales of production equipment and agricultural equipment used in qualifying operations
Refer to the ND Exemption Guidelines for full details.
Use Tax Obligations
Buyers owe use tax if they purchase taxable items for use in North Dakota without paying sales tax, typically in:
- Online or out-of-state purchases
- Direct imports of equipment or supplies
Sellers must understand use tax collection responsibilities if acting as a vendor facilitating such transactions.
Recordkeeping for Audits
Always retain exemption certificates and resale documentation for at least three years. The North Dakota Office of State Tax Commissioner may request proof during an audit.
Simplify Sales Tax Compliance with HOST
Navigating multi-state sales tax regulations—like those in North Dakota—can be overwhelming. That’s where HOST (Hands Off Sales Tax) steps in as your end-to-end compliance partner.
HOST helps businesses register for sales tax permits, track economic nexus thresholds, file accurate returns, and manage exemptions across all 50 states. Whether you’re an in-state vendor, a remote seller, or operating through marketplaces, HOST ensures you meet every requirement—from filing zero-return periods to understanding filing frequency rules.
Their platform handles:
- Sales tax registration (including ND TAP setup and SFN 59507 guidance)
- Monthly, quarterly, and annual filings via state portals like North Dakota TAP
- Resale certificate generation via ResaleCertify
- Nexus monitoring, so you don’t miss tax obligations when thresholds are crossed
- Audit defense and support, ensuring your documentation is complete and compliant
For e-commerce sellers, HOST also offers integrations with Shopify, Stripe, and other platforms—streamlining data collection and reducing risk.
If you’re expanding into new states or just want to offload the stress of compliance, HOST is your one-stop solution. Focus on your business—let HOST handle the tax.
Final Thoughts: Stay Compliant, Stay Confident
Getting a North Dakota sales tax permit is a critical first step toward staying compliant as your business grows—especially if you’re selling across state lines. From understanding nexus thresholds to filing returns on time, the rules can be nuanced but manageable with the right knowledge and systems in place.
Hands Off Sales Tax (HOST) simplifies every aspect of this process so you can stay ahead of the curve, avoid penalties, and focus on scaling your business with confidence. Ready to get started? Reach out to HOST for expert help with your North Dakota sales tax compliance.
Frequently Asked Questions (FAQs)
Do I need a North Dakota sales tax permit if I only sell online from out of state?
Yes, if you exceed the economic nexus threshold—$100,000 in gross sales or 200 transactions into North Dakota in the current or prior calendar year—you’re required to register and collect sales tax, even without a physical presence.
Is there a fee to apply for a North Dakota sales tax permit?
No, there is no application fee. Whether you apply online through the ND TAP portal or via paper form, the permit is issued free of charge.
How long does it take to receive the permit?
Most permits are issued within 3 to 5 business days after submission, though processing may take slightly longer during peak filing periods.
Do I need to renew my North Dakota sales tax permit annually?
No. Once issued, the permit remains active indefinitely unless your business information changes or your account is closed.
What happens if I don’t file a return because I had no sales?
You are still required to file a return for each assigned filing period—even if you had zero sales. Failing to do so can result in penalties or account suspension.
